 | How to get a business loan wih bad credit??? |
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Question: How to get a business loan wih bad credit?I'm looking for information on getting a loan to start a small business. I used to have a partner, but he has since left the business. Any information on this would be of great help. I currently have bad credit, but i do not have enough debt to be anywhere near bankruptcy. The business is a Web Development, Video production, and music production. I don't need the loan for software as we started the business, but he took all the hardware and that is where the loan comes in. anyone that has any information on this please contact me. Someone asked what the exact situation between me an my partner was. We were setup as two independent freelance workers. He contributed the hardware(computers, cameras) I own and purchased the software(3D applications, Web Development tools). I do have a business plan, the only problem is I won't be able to use a lot of the software I have due to my personal hardware not meeting requirements, and the make the situation worst, I'm kind of on a deadline because I do have a couple clients, but I don't want to take a deposit until I officially have all the setup working and running properly(which takes time as well).
Answer: -The brutal reality is that you will not get such a loan unless you pay a very high interest rate, have someone who will co-sign for you or you have a ton of collateral to cover such a loan. -I would lease the hardware you need. Apple has lease financing, so does Dell. If you can't/won't lease then buy used equipment. Financing is a total and complete rip off. -If you are individual, who has an entrepreneurial spirit, you can easily get a loan offered by the federal government. This loan allows you to start a small business. The department of Small Business Administration (SBA) acts as a guarantor for these loans. These loans are provided by banks or financial institutions. Very rarely, the SBA provides the loan directly.Along with the SBA, certain other government agencies provide financing to small businesses through loans and grants. To avail of this loan, you have to submit the business plan that you have chalked out along with your abilities to indicate that you can handle the business properly. Your credit score should be high to get the loan. The lending authorities check your credit ratings before approving your loan.
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